After calculating energy costs, property taxes, home furnishings and home maintenance, those extra 500 square feet can end up costing you thousands of dollars more than you realize.
AVERAGE ONE-TIME COSTS WHEN BUYING A NEW HOUSE
Purchase price of a average new house: $84/sq ft
Closing costs: 3.5% of the home price
Costs to fully furnish a new home: 20% of the home price
AVERAGE ANNUAL COSTS OF HOME OWNERSHIP
Energy costs: $1.03/sq ft
Maintenance: 1% of the home price
Property taxes: 1.3% of the home price
Over a 30 year mortgage, each additional 500 square feet of space will cost you an extra-
$42,000 in initial purchase costs
$1,470 in closing costs
$8,400 in furnishing
$24,148 in mortgage interest
$16,506 in property taxes
$15, 450 in energy costs
$12,600 in maintenance
HOW MUCH THAT BIGGER HOME WILL REALLY COST YOU OVER 30 YEARS ASSUMING YOU HAVE A 30-YEAR MORTGAGE AT 4%
A 1000 sq ft house will cost you an extra $241,148
A 1500 sq ft house will cost you an extra $361,722
A 2000 sq ft house will cost you an extra $482,297
A 2500 sq ft house will cost you an extra $602,871
So before buying that bigger house, ask yourself:
Is it truly worth the extra cost?